Ethereum's price movement today has been influenced by a combination of factors, including recent market volatility and institutional activity. Despite BlackRock's significant acquisition of $276.16 million worth of Ethereum on February 4, the market has not shown a substantial positive reaction. This lack of movement could be attributed to the broader bearish sentiment in the crypto market, as highlighted by Geo Chen, a macro trader, who noted that the market is vulnerable to risk aversion due to ongoing tariff discussions and liquidity tightening.
Additionally, Ethereum's supply dynamics have raised concerns. The recent Dencun update has led to an increase in Ethereum's circulating supply, which some analysts believe could undermine its status as "ultrasound money." This supply surge, coupled with Ethereum's underperformance against Bitcoin, has contributed to a cautious outlook among investors. Pratik Kala, head of research at Apollo Crypto, pointed out that Ethereum lacks strong catalysts to support its price relative to Bitcoin, further exacerbating its struggles in the current market environment.
Ethereum's price has experienced a slight decline of 0.49% today, trading at $2,718.63. The cryptocurrency reached a high of $2,822.67 earlier in the day but has since faced downward pressure.